Research On The Relationship Between The China's Taxation Structure And Economic Growth

During the past 31 years that China adopted the policy of reform and opening up, China's economic development has made remarkable achievements, and has maintained a high-speed growth. At the same time, along with deepening economic reform and the improvement of tax system, especially since the reform of the tax system in 1994, China's tax revenue is also showing a growing trend. China's Tax Revenue growth rate has been exceeding the GDP growth rate for more than 10 years. China's Tax Revenue was 5070.8 billion Yuan in 1994, while 59514.7 billion Yuan at the end of 2009. At the same time, Tax revenue growth keeps a double-digit growth rate. the highest record was 31.39% in 2007,even the lowest record in 1998 has 10.55% growth rate, exceeding the year's GDP growth rate of 9%.This phenomenon is really worth our thinking.The process of modern economic growth is essentially a structural problem. Through the sequence of growth since 1994, it makes an empirical analysis on the revenue impact factors. And it analyses turnover tax, income tax, and other taxes. Further analyzing in the process of tax revenue growth, it find out the macroeconomic factors that influence and the contribution to the tax revenue growth. Using a direct way, it can get the reasons of China's tax high-growth.This article is divided into six chapters. Chapter 1 is the introduction that introduces the research background, purpose, significance, research methods, and presents the relevant theories. Chapter 2 analyses the amount and the structure of the tax revenue since the reform of the tax system in 1994, and presents that the VAT is still the most important part. Chapter 3 to chapter 5 is the main parts of the article. Chapter 3 analyses the VAT, the consumption tax, the sales tax, it focuses on the factors that cause the revenue's over-growth. Chapter 4 analyses individual income tax and the enterprise income tax. Chapter 5 analyses another taxes. Chapter 6 is the conclusion on the other chapters'contents summarized and concluded.